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Tag Archives: buying a home

How Much Should You Anticipate in Hidden Homeownership Costs?

This post is from Jennifer Riner at Zillow.  Making the switch from renting to owning? While historically low mortgage rates might mean your monthly mortgage costs are lower than what you paid while leasing, buyers must plan for more than a mortgage. Although you might factor in the high cost of a down payment, and the title and insurance fees you now face as a homeowner, it’s also important to consider the extra or hidden costs of homeownership. Courtesy of: Zillow   These extra costs can range from property taxes to minor landscaping fees to major roof repairs – depending on your region and the size of your property. According to a recent report from Zillow, the leading real estate marketplace and Thumbtack, a website that connects consumers with service professionals, homeowners might face $9,000 or more per year in hidden or extra homeownership costs. These include both unavoidable costs, such as utilities, and optional maintenance expenses like gutter cleaning. Unavoidable Hidden Costs The report identified three unavoidable hidden costs, which include homeowners insurance, property taxes and utilities. These are non-optional costs, meaning almost every homeowner is responsible for these dues – regardless of where they live. On average, homeowners ...

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Buying A Home – Home Equity Loan or Mortgage?

    Home shoppers can easily get confused when they have to choose between home equality loans and mortgages for buying a home. While both options can be used to purchase the house, looking at the latest trends can help consumers to choose the better direction. Home equity loans are often confusing for first time users. Both normal home equity loans and home equity lines of credit are used to avoid private mortgage insurance at the time of purchase, but a home equity line of credit can also be utilized later for liquidity. Home Equity Loan – Latest Happenings This year, renowned banks and credit unions are developing interest in lines of credit and equity loans as home prices rise in different states and homeowners look to add some amount of equity. Credit reporting agency Experian reports that equity loans increased by 30% in the second quarter compared to the first quarter. However, consumers considering home equity should note that lending standards are now tighter than before. According to Bankrate, the home equity line average rate is 4.99% while the home equity loans average rate is 6.99%. Senior analyst at the source said that lenders aren’t acting as they did in the ...

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